Operating Profit Percentage

Knowledge Center

Determining the return from standard operations. Explanation of Operating Profit Percentage.

What is Operating Profit Percentage? Definition

The Operating Profit Percentage reveals the return from standard operations, excluding the impact of extraordinary items and other comprehensive income.

It shows the extent to which a company is earning a profit from standard operations. As opposed to resorting to asset sales or unique transactions to post an 'artificial' profit.

Calculation of the Operating Profit Percentage. Formula

Calculation of the Operating Profit Percentage is straightforward: subtract the costs of goods sold, as well as all sales, general, and administrative expenses, from sales. Divide the result by sales.

To obtain a percentage that is related strictly to operational results, be sure to exclude interest income and expense from the calculation, since these items are related to a company's financing decisions rather than its operational characteristics.

Expense totals used in the Operating Profit Percentage ratio should exclude extraordinary transactions, as well as asset dispositions, since they do not relate to continuing operations.

Special Interest Group - Operating Profit Percentage Special Interest Group (15 members)

Forum - Operating Profit Percentage   Here you will find interesting and educational discussions.   How can you calculate Operating Ratio in case of services firm? (1 reactions) I need help to calculate the operating profit ratio (operati...

Best Practices - Operating Profit Percentage Here you will find the most valuable ideas.

Expert Tips - Operating Profit Percentage Here you will find high-quality advice from experts.

Resources - Operating Profit Percentage Here you will find powerpoint presentations, micro-learning videos and further information sources. Financial Statement Analysis | Ratio Analysis Ratio Analysis, Finanical Statement Analysis...   Operating Profit Percentage Diagram Determining the return from standard operations...     News about Operating Profit Percentage Calculation         News about Operating Profit Percentage Ratio         Videos about Operating Profit Percentage Calculation         Videos about Operating Profit Percentage Ratio         Presentations about Operating Profit Percentage Calculation         Presentations about Operating Profit Percentage Ratio         Books about Operating Profit Percentage Calculation         Books about Operating Profit Percentage Ratio         More about Operating Profit Percentage Calculation         More about Operating Profit Percentage Ratio

Compare with Operating Profit Percentage:  Gross Profit Percentage

Return to Management Hub: Finance & Investing

More Management Methods, Models and Theory